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Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a tinal statement of partnership liquidation. ALEX AND BESS PARTNERSHIP Statement of Partnership I iquidation Non-cash Cash Liabilities Alex, Capital Bess, Capital Assets Beginning balances Distribution to partners Paid liabilitico Sold noncash assets Updated balances Distribution to partners Updated balances Paid liahilities Paid liquidaliuri expenses Updated balances Distribution to partners Closing balances

Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a tinal statement of partnership liquidation. ALEX AND BESS PARTNERSHIP Statement of Partnership I iquidation Non-cash Cash Liabilities Alex, Capital Bess, Capital Assets Beginning balances Distribution to partners Paid liabilitico Sold noncash assets Updated balances Distribution to partners Updated balances Paid liahilities Paid liquidaliuri expenses Updated balances Distribution to partners Closing balances

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a tinal statement of partnership liquidation. ALEX AND BESS PARTNERSHIP Statement of Partnership I iquidation Non-cash Cash Liabilities Alex, Capital Bess, Capital Assets Beginning balances Distribution to partners Paid liabilitics Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidaliun expernses Updated balances Distribution to partners Closing balances
Transcribed Image Text:Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a tinal statement of partnership liquidation. ALEX AND BESS PARTNERSHIP Statement of Partnership I iquidation Non-cash Cash Liabilities Alex, Capital Bess, Capital Assets Beginning balances Distribution to partners Paid liabilitics Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidaliun expernses Updated balances Distribution to partners Closing balances
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash 50,000 Liabilities 24 40,000 Noncash assets Alex, capital Bess, capital Total liabilities and capital 150,000 90,000 70,000 Total assets $ 200,000 $ 200,000 Part A: Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $30,000 of the partnership's liabilities. c. Sold noncash assets for $160,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $10,000. f. Paid $4,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $30,000 of the partnership's liabilities. c. Sold noncash assets for $160,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $10,000. f. Paid $4,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. < Prev. 5 of 5 Next
Transcribed Image Text:Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash 50,000 Liabilities 24 40,000 Noncash assets Alex, capital Bess, capital Total liabilities and capital 150,000 90,000 70,000 Total assets $ 200,000 $ 200,000 Part A: Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $30,000 of the partnership's liabilities. c. Sold noncash assets for $160,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $10,000. f. Paid $4,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $30,000 of the partnership's liabilities. c. Sold noncash assets for $160,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $10,000. f. Paid $4,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. < Prev. 5 of 5 Next
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